Rutherford fires back at allegations of sexual harassment, political pressure

February 10, 2014|By John Chase and Monique Garcia | Clout Street

Edmund Michalowski (Michalowski campaign handout)

State Treasurer Dan Rutherford held an afternoon news conference to fire back at a former top deputy who filed a federal lawsuit today accusing Rutherford of sexually harassing him and pressuring him to perform political work on state time. Rutherford denied the allegations and said he wouldn’t be forced out of the Republican primary for governor.

Edmund Michalowski, 43, of Chicago, alleged in the lawsuit that the pressure to do political work goes back to when Rutherford first took office in January 2011 and that he was sexually harassed as early as April 2011. Michalowski alleged that he complained to Rutherford’s chief of staff about both the political pressure and the sexual harassment.

“I strongly deny any, any inappropriate conduct, regardless of the date,” Rutherford said at the news conference.

Rutherford said there were no witnesses to the allegations other than Michalowski, that the former employee never complained about inappropriate behavior and that the allegations were timed to hurt Rutherford as the March 18 Republican primary election nears.

Rutherford said he had no plans to drop out of the race: “I’m going to keep my head high, I’m going to continue on.”

The issue also came up tonight near the end of the WLS 890-AM Republican governor’s debate in Hoffman Estates. Candidates were allowed to ask each other questions, and state Sen. Kirk Dillard took the opportunity to bring up the allegations against Rutherford.

“I wish I didn’t have to ask this question, Dan,” Dillard said. “Treasurer Rutherford, are there any more allegations of sexual harassment coming at you from anyone else?”

“Senator Dillard, I believe that was inappropriate,” Rutherford said to applause. “I’m telling all of you right now these allegations are absolutely false.”

Afterward, Dillard said the question was one that had to be asked, given the large amount of attention the allegations have received.

“This has become quite a distraction from the issues, and the Republicans need to know if we’re going to have a nominee, that somehow we’re not going to have explosions down the road,” Dillard told reporters. “It’s perfectly appropriate for a Republican gathering to ask a nominee if there is anything else that could derail our ability to beat Pat Quinn in the fall.”

Also today, Rutherford’s chief of staff, Kyle Ham released a statement through a spokeswoman for the treasurer's office.

"I vehemently deny all allegations agianst myself and Treasurer Rutherford. After an initial review by our office, there is no merit to the accuer's claims. An external investigation is under way and we anticipate the same conclusion," the statement reads.

Michalowski remained at the treasurer’s office until Rutherford held a news conference Jan. 31 to say he was the target of unfounded, politically motivated misconduct allegations made by an employee. Rutherford declined to specify them but said an attorney representing the employee asked for $300,000 to settle the allegations. Rutherford also accused Republican governor rival Bruce Rauner of being behind the attack—an allegation Rauner called ridiculous.

Michalowski’s attorney, Christine Svenson, who filed the case in U.S. District Court in Chicago, has denied there are any political motivations in the case and said she does not have a “horse” in the Republican primary. She received $3,500 from the Rauner campaign last year to review an office lease.

In the lawsuit, Michalowski accuses Rutherford of repeatedly “hitting on” him, touching him inappropriately and creating a hostile work environment for him and other employees from April 2011 through December 2013.

Michalowski’s lawsuit alleges one incident in which he traveled with Rutherford from Chicago to the treasurer’s Chenoa home about 100 miles south for an “overnight retreat” at which he and other staff were to discuss whether potential Rutherford political donors were suitable to join advisory boards to the treasurer’s office. Michalowski claims he was the only staffer in attendance and that after dinner he retired to the guest bedroom, at which point Rutherford “entered Plaintiff’s bedroom and grabbed at Plaintiff’s genital area.